Chinese Shipowner Buys 51% of PetroChina Dalian

Hong Kong-listed shipowner Cosco Shipping Energy announced March 6 it has decided to take a 51% stake in PetroChina Dalian, a unit of PetroChina Company, for approximately HK$490mn (US$63mn).

The energy shipping company will also make capital contribution of no less than approximately HK$151.2mn to PetroChina Dalian within two months of completion of the stake's acquisition. PetroChina Dalian is principally engaged in international and domestic shipping and transportation business of petroleum and other resources.

Post the transaction, Cosco and PetroChina Company will hold 51% and 49% equity interests in PetroChina Dalian respectively. PetroChina Dalian will therefore become a subsidiary of Cosco and its financial results will be consolidated with the latter’s results.

Cosco said that deal represents a good opportunity to strengthen its petroleum and other resources shipping business considering the existing operation and resources of PetroChina Dalian.

Under the agreement PetroChina Company shall give priority to engaging PetroChina Dalian to transport its refined oil, crude oil, fuel oil, chemicals, LNG and other marine resources.